Andrey Klepach Ousted After Warning of Ukraine War Cost Rise

Andrey Klepach, the chief economist of Russia’s state development bank VEB, issued a warning that the country’s economic performance is falling behind its main competitors. In a recent briefing to the bank’s senior management, Klepach highlighted that Russia’s growth trajectory, investment climate, and productivity gains have been outpaced by those of the European Union, the United States, and China.

Klepach cited a range of indicators to support his assessment, noting that Russia’s GDP growth rate has been consistently lower than the averages of its rivals over the past five years. He also pointed to declining foreign direct investment inflows and a widening gap in technological innovation and infrastructure development. The VEB, which is tasked with financing long‑term projects to support national development goals, has used the warning to call for a review of its funding strategy and to recommend policy measures aimed at boosting competitiveness.

The bank’s leadership has acknowledged the need to address these gaps, with plans underway to increase support for high‑technology sectors and to streamline regulatory frameworks. While the bank’s next steps remain under discussion, Klepach’s remarks underscore a growing concern within Russia’s financial and policy circles that the country must accelerate reforms to close the performance gap with its global peers.